Northern Oil and Gas, Inc. NOG recently announced its joint development program in Appalachia with one of the region’s most capital-efficient operators, which requires focused work on drilling activities throughout 2025. The program needs a capital commitment capped at $160 million and would provide the company a 15% working interest stake. The program exemplifies the company’s strategic and forward-looking capital allocation move.
Northern Oil and Gas’ non-operated business model allows it to keep its overhead costs down compared to peers. This enables it to capture higher margins. The company can work with leading producers in each basin, acquiring attractive acreage — overlooked by competitors due to the small working interest involved — to diversify its production profile.
The strategic investment strategy of NOG in Appalachia, one of North America’s richest gas-producing regions, would position it to enhance its natural gas inventory significantly. By participating in the potential wells, due to be spud in 2025, NOG would add certainty to its development schedule and ensure clear visibility of its 2025 aims.
NOG’s collaboration with a substantial operating partner highlights its potential to leverage its market position. The joint venture not only strengthens its operational footprint but also supports its commitment to delivering superior returns to stakeholders through innovative capital solutions.
Northern Oil and Gas is an independent upstream operator engaged in the acquisition, exploration, development and production of oil and natural gas properties. Currently, NOG has a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at some other stocks like ARC Resources Ltd. AETUF, Flotek Industries, Inc. FTKand Nine Energy Service, Inc. NINE, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS (earnings per share) growth rate for next year is 51.59%, which aligns favorably with the industry growth rate of 12.60%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.
Houston, TX-based Nine Energy Service, Inc. provides onshore completion and production services to unconventional oil and gas resource development. NINE’s expected EPS growth rate for the current quarter is 33.33%, which aligns favorably with the industry growth rate of 9.04%.
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